E$10\mathrm{.}13($LO $4,5),$ AP$$Malea Industries produces a cleaning product that works for the peskiest stains. It$$s pricey, but less expensive than hiring a professional cleaning service. The managers at Malea are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed$-$MOH costs for the year were $$2,160,000.$ The company$$s standards for one gallon of cleaning solution are as follows, along with actual information for the month.

Standard Quantity per Unit Standard Price

DM $0\mathrm{.}5$ gallons of solution $$20\mathrm{.}00$ per gallon

DL $0\mathrm{.}3$ DL hours $$18\mathrm{.}00$ per DL hour

Variable$-$MOH $2\mathrm{.}0$ machine hours $$2\mathrm{.}40$ per machine hour

Fixed$-$MOH $2\mathrm{.}0$ machine hours $$4\mathrm{.}00$ per machine hour

Actual results for January:

$22,000$ gallons were actually produced.

Cost of DM purchased was $$255,800$ for $12,500$ gallons of solution.

DM used in production was $10,800$ gallons.

Cost of DL was $$122,400$ for $7,000$ DL hours worked.

Variable$-$MOH cost was $$110,300$ for $46,800$ machine hours used.

Fixed$-$MOH cost was $$195,000.$

Required

$1.$ Determine the DM$,$ DL$,$ and variable$-$MOH price and efficiency variances for the month.

$2.$ Determine the fixed$-$MOH price and volume variances for the month.

$3.$ Give some plausible explanations for these variances.

$4.$ If Malea Industries sells this cleaning product for $$42$ per gallon, what is its expected gross margin percentage?